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MCB Bank Limited

Investors Briefing
Financial Performance Analysis
For the year ended
December 31, 2015
Presented by:
Hammad Khalid
Head Investor Relations, Financial Reporting and Taxation

Disclaimer
THIS PRESENTATION IS BEING PRESENTED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED, REDISTRIBUTED OR
PASSED ON, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE.
This presentation might contain certain forward looking statements. These forward looking statements that include words or phrases such as the
Company or its management believes, expects, anticipates, intends, plans, foresees, or other words or phrases of similar import.
Similarly, statements that describe the Company's objectives, plans or goals also are forward-looking statements.

All such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those
contemplated by the relevant forward-looking statement. Such forward looking statements are made based on management's current expectations
or beliefs as well as assumptions made by, and information currently available to, management.

The Company, nor any of their respective affiliates, shareholders, directors, employees, agents or advisers, makes expressed or implied
representations or warranties as to the accuracy and completeness of the information contained herein and none of them shall accept any
responsibility or liability (including any third party liability) for any loss or damage, whether or not arising from any error or omission in compiling
such information or as a result of any party's reliance or use of such information.

The information and opinions in this presentation are subject to change without notice. No representation or warranty, express or implied, is made as
to the accuracy, completeness or fairness of the information and opinions contained in this presentation.

By participating in this presentation or by accepting any copy of the slides presented, you agree to be bound by the foregoing limitations.

Please Note
Certain prior period financial numbers have been restated to conform to current period results presentation
All numbers are presented on the basis of unconsolidated financial results, unless stated otherwise
The figures are presented in millions, rounded, and as percentages, unless otherwise stated in 000s, billions and bps.

MCB Bank Limited

Key Achievements

MCB Bank carries the highest CASA base of over 93%;


Financial strength depicted by asset base of over PKR 1 Trillion;
MCB Bank has maintained one of the highest spreads in the
industry over the last many years;
MCB Bank has the highest return on assets of 2.62% as at
December 31, 2015;
One of the highest Return on Equity of 23.25% in the industry;
One of the Lowest Infection Ratio of 6.12% in the industry;
One of the Lowest Cost to Income Ratio of 35.23%;
One of the highest market capitalization in the equity markets;
Highest Dividend payout ratio in the industry;
Winner of Best Presented Annual Accounts Award by SAFA being
the 1st Pakistani Bank to win this accolade;
Winner of Best Corporate Awards (by ICAP/ICMAP) 5 times in
past 6 years.
INVESTOR RELATIONS
MCB BANK LIMITED

MCB Bank Limited

Statement of Financial Position


Increase of 6% in Equity

Unconsolidated
2015

Assets

Rs. in mln

2014

Consolidated

YTD

2015

2014

YTD

1,016,630

934,631

81,998

9%

1,020,980

941,606

79,373

8%

Advances - net

314,125

303,559

10,565

3.5%

315,311

304,001

11,310

4%

Investments

568,803

511,137

57,665

11.3%

564,300

516,898

47,401

9%

Cash and Balances with Banks &


Lending to Financial Institutions

70,023

51,188

18,836

37%

76,457

51,236

25,221

49%

Other Assets(including Fixed Assets)

63,679

68,747

(5,068)

-7%

64,912

69,472

(4,560)

-7%

Liabilities

878,829

804,527

74,302

9%

878,803

805,337

73,465

9%

Deposits

708,091

688,330

19,762

3%

706,240

688,270

17,970

3%

Borrowings

118,459

59,543

58,917

99%

118,615

59,777

58,838

98%

Bills Payable

11,975

16,628

(4,652)

-28%

11,975

16,628

(4,652)

-28%

Other Liabilities(including Deferred Tax)

40,303

40,027

276

1%

41,972

40,663

1,309

3%

Net Assets

137,800

130,104

7,696

6%

142,177

136,269

5,908

4%

Equity without surplus (incl. M.I)

112,904

106,908

5,995

6%

115,765

110,607

5,158

5%

INVESTOR RELATIONS
MCB BANK LIMITED

MCB Bank Limited

Non Performing Loans (NPLs)

Rs. In mln

Coverage ratio* at 90.83% (YE14: 85.62%), NPLs ratio improved to 6.12% (YE14: 6.80 %)
Dec 15
Total NPLs
QoQ
QoQ % variance
Substandard
QoQ
QoQ % variance
Doubtful
QoQ
QoQ % variance
Loss
QoQ
QoQ % variance
OAEM
QoQ
QoQ % variance

20,369
(444)
-2%
(254)
-100%
46
(632)
-93%
20,323
493
2%
(52)
-100%

Sep 15
20,814
(387)
-2%
254
(45)
-15%
678
(187)
-22%
19,830
(154)
-1%
52
(1)
-1%

June 15
21,201
(483)
-2%
299
84
39%
865
(107)
-11%
19,984
(483)
-2%
53
23
79%

Mar 15
21,684
(224)
-1%
215
(19)
-8%
972
99
11%
20,467
(282)
-1%
29
(21)
-42%

Dec 14
21,908
(17)
0%
234
(90)
-28%
874
(46)
-5%
20,749
153
1%
50
(35)
-41%

YTD (Dec 15 vs. Dec 14)


Var.
Total NPLs
(1,539)
Substandard
(234)
Doubtful
(828)
Loss
(426)
OAEM
(50)

%
-7%
-100%
-95%
-2%
-100%

Concentration of Category of NPLs

Substandard
Doubtful
Loss
OAEM

* Coverage ratio = Specific plus General Provision

Dec 15 Sep 15 June 15 Mar 15 Dec 14


0.00%
1.2%
1.4%
1.0%
1.1%
0.23%
3.3%
4.1%
4.5%
4.0%
99.77% 95.3% 94.3% 94.4% 94.7%
0.00%
0.2%
0.2%
0.1%
0.2%

INVESTOR RELATIONS
MCB BANK LIMITED

MCB Bank Limited

Investments
Increase of Rs. 85.67B in Market Treasury Bills & decrease of Rs. 48.95B in Pakistan Investment Bonds .

Dec 2015
Treasury Bills
Pakistan Investment Bonds
TFCs, Debentures, Bonds and PTCs
Euro Bonds
Shares in Listed, Unlisted Co.s & Mutual funds
Sukuks Bonds
Subsidiaries & Associated Undertakings
Investments at cost
Prov for diminution in value of investments
Surplus on revaluation of securities
Investments at revalued amount - net of
provision

Dec 2014

Var.

% var.

Rs. In mln

Sep 2015

Var.

% var.

227,208
280,042
7,055
3,699
17,063
3,260
11,792
550,119
(2,534)
21,217

141,538
328,987
4,448
2,284
12,151
3,960
1,573
494,940
(1,703)
17,900

85,670
(48,945)
2,608
1,415
4,912
(700)
10,219
55,180
(831)
3,317

61%
-15%
59%
62%
40%
-18%
650%
11%
-49%
19%

270,804
282,211
5,384
2,415
15,662
5,620
11,784
593,881
(1,347)
22,966

(43,596)
(2,169)
1,671
1,284
1,401
(2,361)
8
(43,762)
(1,187)
(1,749)

-16%
-1%
31%
53%
9%
-42%
0%
-7%
88%
-8%

568,803

511,137

57,665

11%

615,500

(46,697)

-8%

Composition of Investments
Dec 2015

Dec 2014

T-Bills

41.30%

29%

PIBs

50.91%

66%

Equity securities

5.25%

3%

Debt instruments

2.55%

2%

INVESTOR RELATIONS
MCB BANK LIMITED

MCB Bank Limited


Rs. In mln

Deposits
CASA reported at 93%, Increase recorded in Current Deposits +10%,
Saving Deposits +2%
Q4 15
Volume

Q3 15
Mix

Volume

Q2 15
Mix

Mix

765,791

Volume

Q4 14
Mix

736,157

Volume

Mix

Deposits - Volume

708,091

Current deposits

259,818

37%

260,294

37%

303,474

40%

258,949

35%

236,427

34%

Savings deposits

398,492

56%

404,564

57%

408,359

53%

413,424

56%

389,685

57%

49,782

7%

47,338

7%

53,958

7%

63,784

9%

62,218

9%

Term Deposits

712,197

Volume

Q1 15

688,330

CASA

658,310 92.97%

664,859 93.35%

711,833 92.95%

672,373 91.34%

626,112 90.96%

Variance

YoY

YoY

YoY

YoY

YoY

QoQ

QoQ

QoQ

QoQ

QoQ

Current deposits

10%

0%

15%

-14%

15%

17%

22%

10%

10%

5%

Savings deposits

2%

-2%

6%

-1%

12%

-1%

15%

6%

10%

2%

CASA

5%

-1%

10%

-7%

13%

6%

17%

7%

10%

3%

-20%

5%

-21%

-12%

-7%

-15%

17%

3%

-4%

4%

3%

-1%

7%

-7%

12%

4%

17%

7%

9%

3%

Term Deposits
Total Deposits
Market Share (Domestic)
Industry
MCB
Share

QoQ

QoQ

QoQ

QoQ

QoQ

9,675,588

6.79%

9,060,700

-0.88%

9,141,126

7%

8,508,337

2%

8,342,172

4%

692,751

-1%

700,454

-7%

755,448

4%

727,415

7%

679,977

3%

7.16%

7.73%

8.26%

Source: System Deposits, State Bank of Pakistan. In the absence of domestic numbers of peer banks, total deposits base has been used in the computation.

8.55%

8.15%

INVESTOR RELATIONS
MCB BANK LIMITED

MCB Bank Limited

Profit and Loss Statement

Rs. In mln

Standalone PBT increased by 15% and PAT increased by 5%


Unconsolidated
2015

2014

Consolidated

+/-

2015

2014

+/-

Mark-up Income

80,532

77,269

3,263

4%

80,726

77,411

3,315

4%

Mark-up Expense

31,210

33,757

(2,546)

-8%

31,172

33,770

(2,598)

-8%

49,322

43,512

5,810

13%

49,554

43,641

5,913

14%

17,115

12,944

4,171

32%

17,063

13,261

3,802

29%

66,437

56,456

9,981

18%

66,617

56,902

9,715

17%

23,560

21,668

1,892

9%

24,078

22,071

2,007

9%

admin expenses

23,252

21,443

1,809

8%

23,762

21,846

1,916

9%

PF reversal

(776)

(832)

56

-7%

(776)

(832)

56

-7%

other charges

1,084

1,056

28

3%

1,091

1,056

35

3%

796

582

214

37%

42,877

34,788

8,088

23%

43,335

35,413

7,922

22%

543

(1,941)

2,484

-128%

545

(1,941)

2,486

-128%

against Investments

831

(847)

1,679

-198%

831

(847)

1,679

-198%

against loans & advances

(288)

(1,094)

806

-74%

(286)

(1,094)

808

-74%

Profit before Tax

42,333

36,729

5,604

15%

42,789

37,354

5,436

15%

16,782

12,405

4,378

35%

17,754

12,580

5,175

41%

25,551

24,325

1,226

5%

25,035

24,774

261

1%

Net Mark-up Income


Non Interest Income
Total Income
Non Mark-up Expense

Share of Undertaking
Profit before Provisions
Provisions

Taxation
Profit after Tax

INVESTOR RELATIONS
MCB BANK LIMITED

MCB Bank Limited

Non- Markup Income

Rs. In mln

Dec 2015

NON MARKUP INCOME

Dec 2014

Var.

% var.

17,115

12,944

4,171

32%

Fee, Commission & Brokerage

8,383

7,225

1,158

16%

Dividend Income

1,267

1,061

206

950

1,443

Capital Gains

4,428

Other Income

2,088

Income from dealing in Foreign Currencies

Capital Gains

Dec 2015

Budgeted
Dec 2015

% var.

3,867

29%

8,417

(34)

0%

19%

1,100

166

15%

(493)

-34%

1,684

(735)

-44%

1,648

2,780

169%

1,260

3,168

251%

1,566

521

33%

786

1,301

165%

Dec 2014

Var.

13,248

Var.

% var.

Federal Government Securities


-Market Treasury Bills
-Pakistan Investment Bonds
Listed Shares / Units

172

(60)

232

-387%

2,135

181

1,954

1080%

2,121

1,527

594

39%

4,428

1,648

2,780

169%

INVESTOR RELATIONS
MCB BANK LIMITED

MCB Bank Limited

Financial Statements Variance Analysis

Rs. In mln

INVESTOR RELATIONS
MCB BANK LIMITED

MCB Bank Limited

Key Ratios
BV

ROA

ROE

EPS
(annualised)

CAR

ADR

Coverage
NonInfection Coverage (incl. benefit
markup/Total
ratio
ratio*
of liquid
Rev
sec)**

Dec 2015
Sep 2015
June 2015
Mar 2015

101.44
101.20
99.21
99.19

2.62%
2.74%
2.68%
3.25%

23.25%
24.55%
24.92%
29.13%

22.96
24.22
24.33
28.43

19.00%
20.13%
19.02%
19.54%

46.98%
45.67%
43.52%
43.76%

6.12%
6.40%
6.36%
6.73%

90.83%
85.16%
84.98%
85.36%

99.82%
94.08%
93.59%
93.87%

25.76%
26.76%
27.52%
30.45%

Dec 2014
Sep 2014
June 2014
Mar 2014

96.05
94.09
91.68
89.15

2.78%
2.87%
2.79%
2.68%

23.83%
23.93%
23.53%
22.44%

21.85
21.71
21.07
19.81

20.41%
20.46%
20.22%
21.09%

46.83%
46.24%
44.19%
43.45%

6.80%
7.12%
7.29%
8.26%

85.62%
84.62%
85.60%
85.66%

94.00%
95.11%
94.15%
94.23%

22.93%
22.98%
20.29%
21.49%

Dec 2013
Sep 2013
June 2013
Mar 2013

87.39
86.81
85.05
82.68

2.72%
3.03%
3.08%
3.02%

23.09%
24.70%
25.91%
25.51%

19.31
20.58
21.36
20.73

22.25%
24.77%
23.96%
22.54%

42.41%
41.98%
40.08%
46.37%

8.68%
10.17%
10.12%
9.41%

85.74%
84.28%
86.92%
88.97%

94.66%
92.65%
95.42%
97.22%

22.78%
23.09%
23.70%
19.47%

Dec 2012
Sep 2012
June 2012
Mar 2012

79.85
77.75
76.17
73.51

2.91%
3.14%
3.35%
3.38%

24.59%
26.87%
27.38%
27.73%

18.57
19.83
20.14
20.02

22.24%
24.18%
22.15%
22.26%

48.14%
46.29%
49.81%
49.37%

9.74%
10.41%
10.00%
10.39%

89.23%
85.79%
86.12%
85.00%

87.55%
93.58%
94.30%
95.87%

18.30%
18.17%
19.91%
18.41%

Dec 2011

71.22

3.18%

26.17%

17.45

21.79%

50.88%

10.67%

83.76%

94.74%

15.41%

* Coverage ratio is based on specific plus general provision


** Coverage ratio based on specific provision (excld. GP) plus benefit of liquid securities
Net revenue= net markup income + non-markup income

INVESTOR RELATIONS
MCB BANK LIMITED

International Recognition

Winner -Best Corporate Report Award


2014 Banking Sector
Winner - Best Corporate Report Award 2013
Winner - Best Corporate Report Award 2012
Runner-up Best Corporate Report Award 2011
Winner - Best Corporate Report Award 2010
Winner - Best Corporate Report Award 2009

Euromoney Awards for Excellence 2012:


Best Bank in Pakistan
Best Bank in Pakistan 2011, 2008, 20032005, 2001, 2000
Best Bank in Asia 2008

Best Bank Led Mobile Money Transfer


Program 2010

Awards / Accolades

Best bank in Pakistan - 2015

Ranked among the Top 25


Companies in Pakistan

PCR Corporate Philanthropy Survey 2011:


Certificate of Philanthropy
Ranked 25th out of 490 PLCs (by volume of
donations)

Most Stable Bank of the year 2014


Best Bank of the year 2013 Large Bank
Most Stable Bank of the year 2013
Investor Relations Award 2011: Runner-up
Best Bank of the Year 2011
Most Stable Bank of the Year 2011

2012: Ranked 624, 2011: Ranked 606, 2010: 621


Country Ranking: 3rd highest among the local
Top 5

Best Commercial Bank


Pakistan 2012

CSR Business Excellence Award 2012:


Best Media Coverage

Best Domestic Bank in Pakistan: 2014;


2009, 2008, 2006, 2005 & 2004
The QFC Asian Banker Leadership Achievement Award 2010

Winner Best Presented Annual


Accounts 2014
1st Runner Up Best Presented Annual
Report Awards 2013 Category Private
Sector Banks
2nd Runner Up Best Presented Annual
Report Awards 2012 Category Private
Sector Banks
Joint 2nd runner-up in the banking sector
- Best Presented Accounts and Corporate
Governance Disclosure Awards 2010

Strongest Bank in Pakistan 2014


Strongest Bank in Pakistan 2010

Triple A Country Awards


Best Domestic Bank Pakistan 2014: 2013: 2012:
Best Bank Pakistan 2014

MCB Bank Limited

Thankyou
For further details on MCB Bank Limited, please visit www.mcb.com.pk
For any query/comments/feedback, please e-mail
investor.relations@mcb.com.pk